ProShares UltraPro QQQ ETF (TQQQ)

[TREND1]

QQQ can do little wrong here in 2020, but the ETF is ripe for a corrective period as it becomes the most extended since 1999.

Current conditions, while frothy, are not quite the same as they were in 2000 so I do not expect another crash. For those of us old enough to remember, dotcom stocks were valued using a multiple of sales because there were no earnings at the time! There are earnings this time, but this does not decrease the odds of a correction.


There are not enough extremely extended instances to build a strategy or to suggest some probabilities. Nevertheless, QQQ is up over 50% and the last pullback greater than 5% occurred on April 1st. QQQ is clearly extended and ripe for a correction, which could involve a sideways consolidation or a pullback to the low 240s.

BY ART HILL